Induced consumption

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Induced consumption is a term used to describe consumption expenditure by households on goods and services which varies with income. Such consumption is considered induced by income when expenditure on these consumables varies as income changes.

For example, expenditure on a consumable that is considered a normal good would be considered to be induced.

Induced consumption is, by definition, the opposite of autonomous consumption.

[edit] See also

• Consumption (economics)
• Consumption function